DoD's $6.8M Handheld Imaging Tool Contract Awarded to Sensor Concepts, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $6,812,360 ($6.8M)

Contractor: Sensor Concepts, LLC

Awarding Agency: Department of Defense

Start Date: 2017-05-09

End Date: 2026-12-31

Contract Duration: 3,523 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF HANDHELD IMAGING TOOL (HIT) EXTENDED CAPABILITY

Place of Performance

Location: LIVERMORE, ALAMEDA County, CALIFORNIA, 94550

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $6.8 million to SENSOR CONCEPTS, LLC for work described as: IGF::OT::IGF HANDHELD IMAGING TOOL (HIT) EXTENDED CAPABILITY Key points: 1. The contract for the Handheld Imaging Tool (HIT) Extended Capability has a total value of $6.8 million. 2. Awarded to Sensor Concepts, LLC, the contract falls under Research and Development in Physical, Engineering, and Life Sciences. 3. Competition was full and open after exclusion of sources, suggesting a competitive process was initiated. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type requires close monitoring to ensure costs remain reasonable and do not exceed projections. Benchmarking per-unit costs for similar R&D imaging tools is difficult due to the specialized nature of the technology.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, specific sources may have been excluded initially. This method aims for competitive pricing but the exclusion clause warrants scrutiny.

Taxpayer Impact: Taxpayer funds are being used for advanced R&D. The effectiveness and ultimate utility of the HIT Extended Capability will determine the true value for money.

Public Impact

Development of advanced imaging technology for potential military applications. Investment in research and development within the defense sector. Potential for improved situational awareness or data collection capabilities for the Air Force. Contract duration extends to late 2026, indicating a long-term project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Exclusion of sources in competition may limit price discovery.
Long contract duration increases risk of scope creep or obsolescence.

Positive Signals

Full and open competition was pursued.
Contract supports critical R&D for the Department of Defense.
Clear end date provides project definition.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. Spending in this area is crucial for technological advancement but can be subject to high uncertainty and long development cycles.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

Oversight will be critical for the Cost Plus Fixed Fee contract to ensure costs are controlled and the project stays within scope. The Air Force will need robust mechanisms to monitor expenditures and performance.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Cost Plus Fixed Fee contract structure.
Potential for limited competition due to specialized R&D.
Long contract duration increases risk.
Lack of transparency on source exclusion rationale.
Uncertainty inherent in R&D projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.8 million to SENSOR CONCEPTS, LLC. IGF::OT::IGF HANDHELD IMAGING TOOL (HIT) EXTENDED CAPABILITY

Who is the contractor on this award?

The obligated recipient is SENSOR CONCEPTS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $6.8 million.

What is the period of performance?

Start: 2017-05-09. End: 2026-12-31.

What specific capabilities does the HIT Extended Capability aim to provide, and how do these align with current Air Force operational needs?

The Handheld Imaging Tool (HIT) Extended Capability likely aims to enhance existing imaging functionalities with advanced features, potentially including higher resolution, broader spectrum analysis, or improved data processing. Its alignment with Air Force needs would depend on specific mission requirements, such as intelligence gathering, reconnaissance, or threat detection. Without detailed project specifications, it's difficult to ascertain the precise alignment and thus the full value proposition.

What were the specific reasons for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' award, and did this exclusion impact the final price?

The exclusion of sources typically occurs when only a limited number of contractors possess the necessary specialized technology, security clearances, or unique capabilities required for a project. The specific reasons for exclusion in this case are not detailed in the provided data. While the competition was 'full and open' among the remaining eligible sources, the initial exclusion could potentially limit the breadth of competitive offers and, consequently, the downward pressure on price.

How will the effectiveness and long-term utility of the HIT Extended Capability be measured to justify the $6.8 million investment?

Measuring the effectiveness and long-term utility of R&D investments like the HIT Extended Capability involves establishing clear performance metrics and key performance indicators (KPIs) prior to or during development. These metrics should align with intended operational benefits, such as improved accuracy, reduced response times, or enhanced intelligence gathering. Post-deployment evaluations and user feedback will be crucial to assess if the technology meets its objectives and provides a justifiable return on the $6.8 million investment over its lifecycle.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7950 NATIONAL DRIVE, LIVERMORE, CA, 94550

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,350,410

Exercised Options: $7,350,410

Current Obligation: $6,812,360

Actual Outlays: $49,124

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline